Home / Knowledge / News / Textiles / FDI in Indian textile sector to grow 5-7%: Experts
FDI in Indian textile sector to grow 5-7%: Experts
04
Mar '13
Several international retail brands are planning to invest in Indian textile sector as the Central Government has announced many incentives, including tax exemptions, to the textile and garment industry in the Union Budget 2013-14. According to the textile industry experts, there will be 5-7 percent increase in foreign direct investment (FDI) with global brands such as Walmart, Hennes and Mauritz group (H&M), IKEA and Tesco planning to invest in Indian retail segment.
 
Mr. Prashant Agarwal, joint managing director of Wazir Advisors Pvt Ltd, told fibre2fashion, “With several incentives and tax exemption announced by the Finance Minister P Chidambaram in the Union Budget 2013-14, several multi-brand retail companies including Walmart, H&M, Tesco and IKEA have shown interest to invest in the Indian textile and garment industry.”
 
“The removal of excise duty on branded garments would mean low manufacturing cost of labeled clothing, which will increase competition in the apparel industry and encourage foreign investments in the sector. So, the textile and garment sector can expect a 5-7 percent increase in FDI by next financial year,” he informs.
 
According to Mr. Ashish Dikshit, CEO of Madura Fashion and Lifestyle, the Indian clothing and textile industry has witnessed a significant slowdown in the last two years due to combined impact of inflation and excise duty. “The new excise regime proposed in this budget would significantly ease the cost pressures in the industry. It should also bring cheer to consumers and encourage greater consumer spending through stabilization of prices in the category,” he adds.
 
“It is great to see the focus coming back on clothing and food – the two sectors that have been the backbone of the Indian economy,” says Mr. Kishore Biyani, Group CEO of Future Group.
 
He mentions, “The much needed measure of restoring the ‘zero excise duty route’ for clothing industry will not just revive the industry but will also create huge job opportunities. Other measures like setting up of Apparel Parks and continuation of TUFS will further strengthen the sector.”
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search